A new survey has revealed that Filipino small businesses (SMEs) continue to lag their regional counterparts in digital adoption regardless of the promising outlook and employment trends.
CPA Australia has released its 16th annual Asia-Pacific Small Business Survey, which presents an analysis of SME issues and sentiment across the region with a focus on Philippines.
The latest survey, which included responses from 4,236 SMEs in 11 Asia-Pacific markets, has revealed that 62% of respondents reported earning more than 10% of their revenue from online sales, below the surveyed average of 67%.
Though 74% received more than one-tenth of their revenue from digital payment technologies like Dragonpay and GCash, close to the regional average (75%), just 13% sought advice from IT consultants last year, well below the Asia-Pacific average of 28%.
The survey also highlighted that those SMEs that invested in technology in 2024 experienced benefits, with 69% reporting improved profitability, surpassing the regional average of 56%.
On the positive note, the survey revealed that Filipino SMEs continue to show strong growth dynamics, with 77% reporting growth in 2024 and 89% expecting to expand in 2025.
The survey results indicate that the growth is driven by a focus on customer needs with 46% citing customer loyalty and 37% pointing to improved customer satisfaction as their top contributors to growth.
In 2024, the number of growing businesses in the Philippines reached its highest point since 2019, and 41% of SMEs increased their workforce last year with 57% plans to expand employee base in 2025.
CPA Australia Philippine finance industry qualified accountant Rufus Pinto said: “Small businesses in the Philippines are thriving due to their exceptional customer-centric approach, which helps them to retain loyal clients and attract new ones.
“Our young population is a key driver of the dynamic economy. The Philippines has one of the youngest small business owner profiles in the region and their strong entrepreneurialism is driving growth in the sector.”
Financial access remains a pressing issue, as 65% of them sought external finance in 2024, but only 22% found it easy to secure funding with 40% of them responded that rising costs as a major barrier to growth.
Pinto added: “Filipino small businesses should set ambitious long-term goals and craft well-prepared business plans towards achieving them. These are persuasive and solid documents for securing bank loans.”
Looking ahead, 28% Filipino SMEs are expecting strong growth from overseas markets in 2025, the highest expectation in three years and above many of their regional counterparts.
